For many consumers, including corporations and small businesses, there may be instances where an immediate payment is necessary to avoid late fees, service charges, termination of a service or contractual issues. Repeated late payments may also result in a negative credit report and other adverse consequences. An Internet connection enables consumers to easily schedule payments to various payees through a personal account. However, some payees may request or even require a guaranteed payment, rather than a personal check or online payment. Currently, if consumers want to send a guaranteed payment instrument, the consumer is required to go to a bank (or other institution) and obtain a certified check, cashier's check or other similar instrument. However, as most establishments close at a reasonable closing time, around 5 pm, the transaction must occur during normal business hours. The consumer would then be required to delivery the guaranteed payment to a mail facility for overnight delivery, prior to closing time, which is generally around 6-8 pm. As a result, depending on the consumer's availability and overall convenience, it may take a consumer a few days to delivery a guaranteed payment.
To effectively delivery physical payment instruments to a payee, consumers are still required to coordinate with a mail facility or other distribution center. While some services may provide a guaranteed payment instrument, a recipient is generally required to pick up the payment instrument at a pick-up center.
Other drawbacks may also be present.